Concern About the Cost of Managing a Widely Diversified Financial

question 105

Multiple Choice

Concern about the cost of managing a widely diversified financial company has been used to justify product segmentation on the grounds of

• A)safety and soundness issues.
• B)economy of scale and scope issues.
• C)conflict of interest issues.
• D)deposit insurance issues.
• E)regulatory oversight issues.

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Definitions:

Accepting Order

The process of agreeing to fulfill a customer's request for goods or services.

Monthly Financial Advantage

This term does not correspond to a widely recognized financial concept. However, it could refer to the monthly surplus or savings that a business or individual achieves after covering all their expenses.

Outside Supplier

A third-party entity or company that provides goods or services to another company, typically not affiliated with the purchasing company's internal structure.

Grinding Machines

Mechanical equipment designed for the surface finishing of workpieces by removing material through abrasion, often used in manufacturing and metalworking.